Workington leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Workington enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Workington you must see if your lease has between 70 and 90 years left. There are good reasons why a Workington flat owner with a lease having around eighty years unexpired should take steps to make sure that a lease extension is actioned without delay
Leasehold residencies in Workington with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Irrespective of whether you are a tenant or a freeholder in Workington,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Workington valuers.
14 months ago John, started to get close to the eighty-year mark with the lease on his first floor apartment in Workington. In buying his home twenty years previously, the length of the lease was of minimal bearing. by good luck, he recognised he needed to take action soon on Extending the lease. John extended the lease just under the wire in January. John and the landlord subsequently settled on an amount of £5,500 . If the lease had slid lower than eighty years, the figure would have gone up by a minimum £1,000.
In 2013 we were e-mailed by Mr A Lefèvre who, having completed a basement flat in Workington in May 2011. We are asked if we could estimate the price would likely be for a 90 year lease extension. Identical premises in Workington with an extended lease were valued around £245,000. The mid-range ground rent payable was £50 billed quarterly. The lease finished on 9 April 2093. Considering the 68 years unexpired we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of legals.
Last Spring we were phoned by Dr Isaac Bonnet , who acquired a ground floor flat in Workington in March 2012. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by an additional years. Similar flats in Workington with 100 year plus lease were worth £285,000. The mid-range ground rent payable was £55 billed per annum. The lease terminated in 2104. Taking into account 79 years unexpired we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus fees.